ABC perspective

The following will be broadcast on Perspective sometime before Christmas 2008.

Most people do not realise that some banks literally “make money” by giving loans without having money on deposit. The system is called fractional reserve banking and is used in most economies. It sounds as though it is safe because it says that banks have to keep a fraction of their deposits with the Reserve bank. What it means is that for every $100 in initial deposits a bank can lend $90. However this $90 is deposited in the same bank or another bank and another $81 is then loaned. Do this enough times and the first $100 turns into $1000. In Australia the first $100 of new money is created by the Reserve Bank and the next $900 is created by the commercial banks.

We create a lot of money. Last year we made $170 billion dollars out of thin air. This was up 12% from the previous year and is about $8,000 for every person in Australia.

This method of creating money leads inevitably to booms, busts, recessions, depressions, gyrating currencies and inflation.

To illustrate why this is so let us look at the way banks make loans.

Banks only lend money to people who already have money or who have assets. When you borrow money to buy a new house the bank is not concerned too much about the house value but more about your future earnings. The main criteria banks use for deciding whether to lend money is whether you are likely to pay it back and they make no distinction between lending “old money” or “new money”. If it is new money you pay interest even though there is no asset backing the money. Interest is meant to be a rent on an asset that money represents. As there is no asset earning money to pay the interest the system creates more money to pay the interest which in turn requires us to create more money to pay interest and so on. This leads to inflation.

The second problem is asset inflation. Remember banks will loan you money if you have an existing asset. If you already own a house the bank will lend you money for a second house if you use the first house as collateral for the loan. You do not care that the first or second house is overvalued because you expect both houses to increase in value and pay the interest on the loans. The government does not care if the prices inflate because they collect more taxes the higher the value. The banks do not care as they get money from interest.

Like all pyramid selling schemes sooner or later the bubble will burst. Banks now reduce lending because asset values have dropped. This leads to recessions or depressions.

Everyone wins except the last people to get a loan before the bubble bursts but they were active participants. The people who suffer the most are those with few assets or money because their sources of income dry up and they were not even involved.

The problem is not a lack of money. The problem is lack of assets because new money was not spent creating new assets. The system has failed us.

There is a solution and that is to treat new money differently from old money. Let banks only lend money if they have it on deposit.

Let the Reserve Bank, under the guidance of the government, take back control of creating new money and let it lend it at zero interest to citizens who agree to invest the loan in productive infrastructure. Let the loan be paid back from taxation on the income of the citizens who invest in productive infrastructure.

There are many ways this can be implemented and here is one.

A voluntary community organisation, open to all citizens, asks the Reserve Bank for a large zero interest loan and promises to spend it on public transport infrastructure. The loan is used to pay members a Reward each time they car pool either as a rider or driver. Rewards are converted into ordinary money when invested in public transport infrastructure such as building a bicycle way, interest bearing bonds in a light rail system, or a toll way etc. It is estimated that in Sydney alone each year there is a notional value of $100 billion in empty car seats and so the potential to issue car pooling Rewards to be later invested in infrastructure is enormous.

This can be repeated in other areas of the economy. We could give Energy Rewards to people who consume little mains electricity but require the Rewards to be spent on infrastructure to reduce green house gas emissions.

We could give Water Rewards to households who use little water but require their Rewards to be spent on ways to increase the supply of water to the community.

The scheme stabilises the financial system by creating infrastructure assets from new money before the money starts to earn interest. It will lead to zero inflation and eliminate financial booms and busts. It will stop the Australian Economy being held to ransom by the world’s financial markets.

A Different Way to Make Money – Australia

Most people do not realise that banks have been giving the privilege to literally “make money”. Certain privileged banks throughout the world can lend money to people even though the bank does not have matching funds on deposit. In fact for every $100 in real deposit the banks can typically lend $900 in “new money”. This is an enormous privilege but with the privilege there is a responsibility. The current credit crisis is a result of the banks not fulfilling their responsibilities and it is time for our society to think of a better way to “make money”. To put the figure in context last year $170 billion dollars in new money, as measured by the M3 money supply, was created out of thin air. This was up by 12% from the previous year and is about $8,000 for every person in Australia. 
Banks only lend money to people who have money or who have assets. When you borrow money to buy a new house the bank is not concerned too much about the house value but about your future earnings. That is, the main criteria that banks use for deciding whether to lend money is whether you are likely to pay it back. They really do not care too much about what you do with the money as long as they will get their loan back and they make no distinction between loaning “old money” or “new money”. 

This system has several inherent flaws and leads to instabilities. Perhaps the major flaw is that “new money” immediately attracts interest. This leads to inflation because we should not pay interest on money that is not backed by an asset. The idea of interest is a payment on the use of an asset. With new money there is no asset earning money. What happens is that as a society we create more new money to pay the interest which then causes us to create more money to pay interest …
The second flaw is that the system leads to asset inflation bubbles. Remember banks will loan you money if you have an existing asset. If you already own a house the bank will lend you money for a second house if you use the first house as collateral for the loan. The bank does not really care if the underlying value of the first house is less as long as they will get their money if you default on the loan of the second house. You do not care that the first or second house is overvalued because you expect both houses to increase in value and pay the interest on the loans. The government does not care if the prices inflate because they collect more taxes and can charge more taxes.
The only people who suffer are those not in the house market or those who are the last people to get a loan before the bubble bursts. They have little voice in the matter. The house price bubble has to stop sooner or later because it is a form of pyramid selling or Ponzi scheme.
When the bubble bursts or starts to leak slowly we then get a credit crisis with governments rushing around in a panic. The reason governments panic is that the banks reduce lending because asset prices have dropped and so banks are unwilling to lend because there are less asset values against which to lend. This then leads to recessions or depressions because no one wants to loan anyone any money even though it will produce productive assets. The problem is not a lack of money. The problem is one of lack of assets and the government adding more money without thinking about how it will be spent will cause the problem to get worse. In particular the current approach of “handouts” is almost certain to lead to inflation because we have more money chasing fewer assets.
There is a solution and that is to stop the banks creating new money. Let new money be treated differently from old money. Let governments take back control creating all new money and let it lend it to the citizens but require the citizens to invest the money in productive community infrastructure. Let the money be paid back from taxation on the income that derives directly or indirectly from the use of the community facilities.
To give an example. 
A community organisation could be established to stimulate car pooling to work, shops, recreation and all other car trips. A voluntary system is set up where people join to be both riders and drivers in shared road trips in private cars. Because the system is voluntary then if someone abuses the system they are excluded from participating both as a rider and a driver. Each time someone drives or rides in a pooled car they are given a zero interest loan or Reward. This Reward must be invested in public transport infrastructure (including roads) such as financing a light rail system, building the system itself, improved traffic control system, a toll way etc. It is estimated that in Sydney alone there is a notional value of $100 billion in empty car seats each year. If a  fraction of these seats were filled and the money earned spent on public transport infrastructure then Australia would be much better off – and it would not cost the country anything as it was paid for from using an existing asset. The system is non inflationary as Rewards are spent on creating a new productive asset.

A different way to make money

Most people do not realise that banks have been giving the privilege to literally “make money”. The major banks in Australia can lend money to people even though the bank does not have matching funds on deposit. In fact for every $100 in real deposit the banks can lend $900 in “new money”. This is an enormous privilege but with the privilege there is a responsibility. The current credit crisis is a result of the banks not fulfilling their responsibilities and it is time for our society to think of a better way to “make money”. To put the figure in context last year $170 billion dollars in new money was created out of thin air. This was up by 12% from the previous year and is about $8,000 for every person in Australia.
Banks only lend money to people who have money or who have assets. When you borrow money to buy a new house the bank is not concerned too much about the house value but about your future earnings. That is, the main criteria that banks use for deciding whether to lend money is whether you are likely to pay it back. They really do not care too much about what you do with the money as long as they will get their loan back and they make no distinction between loaning “old money” or “new money”. This leads to them lending money to the likes of ABC Learning.

This system has several inherent flaws and leads to instabilities. Perhaps the major flaw is that “new money” immediately attracts interest. This leads to inflation because we should not pay interest on money that is not backed by an asset. The idea of interest is a payment on the use of an asset. With new money there is no asset earning money. What happens is that as a society we create more new money to pay the interest which then causes us to create more money to pay interest …
The second flaw is that the system leads to asset inflation bubbles. Remember banks will loan you money if you have an existing asset. If you already own a house the bank will lend you money for a second house if you use the first house as collateral for the loan. The bank does not really care if the underlying value of the first house is less as long as they will get their money if you default on the loan of the second house. You do not care that the first or second house is overvalued because you expect both houses to increase in value and pay the interest on the loans. The government does not care if the prices inflate because they collect more taxes and can charge more taxes and more for change in land use.
The only people who suffer are those not in the house market or those who are the last people to get a loan before the bubble bursts and they have little voice in the matter. The house price bubble has to stop sooner or later because it is a form of pyramid selling or Ponzi scheme.
When the bubble bursts or starts to leak slowly we then get a credit crisis with governments rushing around in a panic. The reason governments panic is that the banks reduce lending because asset prices have dropped and so banks are unwilling to lend because there are less asset values against which to lend. This then leads to recessions or depressions because no one wants to loan anyone any money even though it will produce productive assets. The problem is not a lack of money. The problem is one of lack of assets and the government adding more money without thinking about how it will be spent will cause the problem to get worse. In particular the current approach of “handouts” is almost certain to lead to inflation because we have more money chasing fewer assets.
There is a solution and that is to stop the banks creating new money. Let new money be treated differently from old money. Let the Reserve Bank create all new money and let it lend it to the citizens but require the citizens to invest the money in productive community infrastructure. Let the money be paid back from taxation on the income that derives directly or indirectly from the use of the community facilities.
To give an example. Gungahlin needs say $240,000,000 dollars in community infrastructure expenditure this coming year. Give each Gungahlin resident $8,000 loan of new money at zero interest but require them to spend the loan on different infrastructure proposals. Let the Reserve Bank print the new money and issue the loans through a community group responsible to the community.
The result would be infrastructure for Gungahlin, the residents getting the infrastructure they as a group want, no inflation because the money is spent creating an asset, and lower prices because the government would not have to charge high prices for the land to cover infrastructure costs.

Emissions Trading Systems: a Webliogr…

Emissions Trading Systems: a Webliography.
“… public policy advances the interests of society most effectively when it is grounded in the best available knowledge.” –  Paul A. T. Higgins (Science in the Policy Process: Rational Decision-Making or Faustian Bargain?   / Bulletin of the American Meteorological Society: May 2008)
 This edition of WWWTools for Education continues to explore responses to evidence of climate change. The theme was introduced in Limits of Computer Modeling: Implications for Government Decisionmaking  (WWWTools for Education: September 07, 2008), and in this edition we present a webliography supporting a greater understanding of Emissions Trading Systems. The next edition in this series will cover the broader range of other mitigation and adaptation strategies being proposed for dealing with climate change.
Terminology.
Most of these words and phrases are becoming increasingly familiar:
ANTHROPOGENIC   (Merriam-Webster) -“of, relating to, or resulting from the influence of human beings on nature“; as in “most of the observed increase in globally averaged temperatures since the mid-twentieth century is very likely due to the observed increase in anthropogenic (man-made) greenhouse gas concentrations”  – Summary for Policymakers  (Intergovernmental Panel on Climate Change) 
CAP-AND-TRADE SYSTEM  – “companies are set an emissions ceiling and must hold sufficient permits to meet that limit. If they exceed the target, they buy permits from businesses that have undershot their quotas.” (Australian Emissions Plan to Compensate Households (Update3) – Gemma Daley : Bloomberg: July 16, 2008)
See also
CARBON CREDITS: Entitlement Certificates issued by the UNFCCC to implementers of approved CDM projects; each represents one tonne of carbon dioxide or equivalent Greenhouse Gas. See Pay Or Get Paid for GHGs  (IIPM: September 26, 2008)
CARBON NEUTRAL: using a CARBON OFFSET to neutralise the CARBON FOOTPRINT of a given action – explained in:
CLEAN COAL: the oxymoron of all time, and probably a phrase that diminishes the credibility of sequestration elements of the debate – a pity, considering the positioning of CCS as a crucial element among solutions.  
What is Clean Coal Technology?   (Sarah Dowdey / HowStuffWorks) gives a general overview of the multiple technologies either in use or under development.
Carbon Capture and Storage from Fossil Fuel Use   (Howard Herzog and Dan Golomb / MIT Laboratory for Energy and the Environment) details the sorts of CCS technology promoted as a prime solution in Australia.
Scientist Casts Doubt over ‘Clean’ Coal  (Sydney Morning Herald: September 26, 2007) – an early reaction to the topic. 
Rudd Defends ‘Clean Coal’ Focus  (Sydney Morning Herald: September 22, 2008) – plan for an Australian CCS research institute.
CLIMATE-SPEAK: 3 phrases from Greenland – “Just a few years ago ...”; “I’ve never seen that before…”; “Well usually … but now I don’t know anymore.” See Learning to Speak Climate  (Thomas L. Friedman / IHT: August 06, 2008)
Climate Change Update.
Now that we have the Garnaut Climate Change Review Final Report, it makes sense to look at its final take on climate change – see especially:
Chapter 2: Understanding climate science
The Report does not attempt to independently evaluate the scientific knowledge relating to climate change. It emphasises the uncertainties inherent in the qualified and contested nature of available scientific evidence, climate sensitivity being the largest of these uncertainties.
It draws extensively on the Fourth Assessment Report of the IPCC, and uses the IPCC definition of climate change.
Chapter 4: Projecting global climate change
 – the importance of maintaining an ambitious mitigation target in order to avoid high-consequence impacts of climate change. Covers:
  • 4.1 How has the climate changed? 
  • 4.2 Understanding climate change projections
  • 4.3 Projected climate change
  • 4.4 Assessing climate risk
Chapter 5: Projecting Australian climate change
 – notwithstanding the unpredictable nature of weather and the difficulty of separating anthropogenic factors from others, this Chapter covers: 
  • 5.2 How climate has changed in Australia, in terms of temperature, rainfall patterns, streamflows, ocean temperatures, the El Niño – Southern Oscillation and Southern Annular Mode phenomena, cyclones and storms, bushfires, and heatwaves.
  • 5.3 Projected climate change in Australia. 

Emissions Update.
Climate Change – Australia  (Emission Statement 2008) – an historical overview from ABS Statistics.
Carbon Emissions on the Rise But Policies Growing Too   (James Russell /  Worldwatch Institute: August 06, 2008) – emphasis on the United States, Europe, India and China; the developing world’s per capita emissions are well below those in industrial countries.
New Report Says Global Carbon Emissions on the Rise despite Reduction Efforts  (Rich Bowden / Tech Herald: September 28, 2008) –  a global four-fold increase in carbon emissions since 2000. See also the Global Carbon Project’s report: Carbon Reductions and Offsets (15 July 2007)
Carbon Trends: an Annual Update of the Global Carbon Budget and Trends  (Global Carbon Project, 2008) – analysis supported by
references, slide presentations, additional emission figures, data files,  and a description of data sources and calculations.
Garnaut Climate Change Review final report, Chapter 3: Emissions in the Platinum Age   – China has overtaken the United States as the world’s largest emitter.
Emissions Trading Systems – Overview Documents.
Emissions Trading   (UNFCCC) – ETS allows countries that have unused emission units to sell excess capacity to countries that have exceeded their targets; commodification of emission reductions or removals; identifies other trading units in the carbon market.
Your Ask the Expert: Carbon Trading   (Abyd Karmali / CNN: October 03, 2008)
Emissions Trading   (Wikipedia)
Market Mechanisms   (International Emissions Trading Association, 2008) – an introduction to emission reduction trading markets.
Linking GHG Emission Trading Schemes and Markets (Jane Ellis and Dennis Tirpak / OECD, October 2006) – sections on different sorts of schemes; glossary of abbreviations.
Inside WCI: Linking   (Eric de Place / Daily Sightline: August 04, 2008) – how different cap and trade programs can coexist.
An Overview of Carbon Markets and Emissions Trading: Lessons for Canada  (Michael R. King / Bank of Canada, 2008) – how emissions trading can mitigate CO2 emissions; key steps in establishing a cap-and-trade system; lessons from the EU Emissions Trading System.
The Garnaut Climate Change Review: Final Report  may be downloaded chapter-by-chapter. See especially:
Perrin Quarles Associates, Inc. to Develop Australia’s Emissions Trading Registry Under the Kyoto Protocol  (MarketWatch: September 26, 2008)
Australian Comment: a Mixed Bag.
Garnaut Backs Broadly Based Australia Carbon Trading (Update3)   (Gemma Daley / Bloomberg: July 04 2008) – trading should start in 2010 with a two-year transition period.
Coming Clean on Climate Change   (Leon Gettler / Age: August 10, 2008) – 48% of Australia’s largest 200 companies will probably suffer severely from climate change; Australian companies are also doing less to address the problem.
Aviation Emissions Plan ‘Too Blunt’  (Peter Veness: news.com: August 20, 2008)
Argus, BHP Chair, Urges Australia to Reconsider Trading Plan   (Gemma Daley / Bloomberg: September 01) – government should consider a carbon tax instead of a cap-and-trade system.
Garnaut Is Wrong, Say Scientists   (Adam Morton / Sydney Morning Herald: September 09, 2008) – call for a more aggressive position.
Carbon Trading Scheme Could Force Transport Prices Up   (John Ferguson / Herald Sun: September 26, 2008) – public transport running on electricity could be more expensive.
Australia Economy Can Afford Emissions Trading: Expert  (Reuters: September 29, 2008)
Global Emissions Agreement Essential: Garnaut   (Emma Rodgers / ABC: September 30, 2008)
Emissions Deal ‘Crucial’ to Economic Future   (Lenore Taylor / Australian: October 01, 2008)
Emissions Cut to Add 37pc to Power Bills   (Lenore Taylor / Australian: October 01, 2008)
Tourism Urged to Get Creative   (TVNZ: October 01, 2008)
Reef Watchers Say Garnaut Half-Right   (Morning Bulletin / October 02, 2008) – corals more resilient than reported.
Roo Industry Backs Climate Change Report   (ABC: October 02, 2008) – should we eat more kangaroo? But see also A Few Roos Loose in Garnaut’s Top Paddock?   (FarmOnline: October 02, 2008)
Economy Won’t Delay Carbon Cut: Wong   (Age: October 02, 2008) – financial crisis should not delay ETS implementation.
MCA Reviews Garnaut Report   (Jessica Darnbrough / Australian Mining: October 02, 2008) – approval from the mining industry.
ETS Initiatives around the World.
NEW ZEALAND:
Climate Change (Emissions Trading and Renewable Preference) Bill (NZ Parliament) –  supported by references to related documents and reports.
New Zealand Emissions Trading Scheme   (Frazer Lindstrom) – detail on the legislation for the introduction of the NZETS, passed September 11, 2008.
Historic Climate Change Legislation Passes in New Zealand   (Government of New Zealand: September 24, 2008)
Emissions Trading Threatens Jobs, Economy, Say Experts  (Diane Cordemans/  Epoch Times: October 01, 2008)
 
EUROPEAN UNION:
Europe Warming Too Quickly  (Alister Doyle / news.com.au: September 29, 2008)
The EU’s Contribution to Shaping A Future Global Climate Change Regime  (European Commission, 2008) – large collection of resources.
The European Union’s Emissions Trading System in Perspective  (A. Denny Ellerman, Paul L. Joskow / Pew Center on Global Climate Change: May 2008) – the world’s first cap-and-trade emissions program; emphasis on its role as a work in progress providing perspective on problems in constructing a global ETS.
See especially Section IV. Controversies, covering issues of windfall profits, the allocation process and over-allocation, volatility of EUA prices, and tlinkage provisions.
European Parliament Votes for Tougher Emissions Targets  (James Kanter / IHT: September 25, 2008)
EU Parliament Panel Backs Plan to Cap Car CO2 in 2012 (Update2)  (Jonathan Stearns / Bloomberg: September 25, 2008) – will apply to all new cars.
EU Parliament Backs Climate Plan  (Quirin Schiermeier / Climate Feedback: October 08, 2008) – from 2013, power stations will not receive free emission allowances; free allowances to manufacturing industries to be phased out by 2020; some concessions to industry.
EU Climate Goals under Pressure As Recession Looms (EurActiv: September 26, 2008) – many useful links at this site.   
Emissions Trading Proves Steep Learning Curve for Airlines  (Kerry Ezard / Flightglobal: September 29, 2008) – compulsory inclusion in the ETS from 2012.
Steelmakers Urge EU to Improve Emissions Proposal  (Reuters: October 02, 2008) – call for balance between ETS and industrial competitiveness.
Emissions Trading in the Netherlands   (Nederlandse Emissieautoriteit, 2006) – concise summary.
Norwegian Emissions Trading System  (ICAO Workshop, Montreal: June 18, 2008) – a slideshow.
NORTH AMERICA:
The Western Climate Initiative   – launched in February 2007: is a collaboration of seven U.S. governors and four Canadian Premiers. Aims to “identify, evaluate and implement collective and cooperative ways to reduce greenhouse gases in the region, focusing on a market-based cap-and-trade system.” 
Developments:
The Regional Greenhouse Gas Initiative – an initiative of the Northeast and Mid-Atlantic States of the U.S; the first mandatory, market-based effort in the U.S. to reduce GHG emissions.
Comment:
Chicago Climate Exchange   – “marketplace for integrating voluntary legally binding emissions reductions with emissions trading and offsets.”
CommentChicago Climate Futures Exchange RGGI Futures and Options Contracts   (Carbon Finance Report: August 20, 2008)
Climate Change Draft Scoping Plan: a Framework for Change: June 2008 Discussion Draft, Pursuant to AB 32, the California Global Warming Solutions Act of 2006  (California Air Resources Board) – “actions designed to reduce overall carbon emissions in California, improve our environment, reduce our dependence on oil, diversify our energy sources, save energy, and enhance public health while creating new jobs and enhancing the growth in California’s economy.” To be considered in November, 2008; measures to be developed and in place by 2012.
Comment:
California Dreaming: Can a Growing State Slash Emissions? (Keith Johnson / Environmental Capital: June 26, 2008)
California Green: State Says Climate Plan Equals Economic Growth (Keith Johnson / Environmental Capital: September 18, 2008)
United States: Weekly Climate Change Policy Update – September 29, 2008 (Kyle Danish, Shelley Fidler, Andrea Hudson Campbell, Kevin Gallagher / Mondaq) – comprehensive summary to date.
The Incidence of U.S. Climate Policy: Where You Stand Depends on Where You Sit  (Dallas Burtraw, Richard Sweeney, Margaret A. Walls / RFF Discussion Paper 08-28, September 2008) – effects of a cap-and-trade program on household costs in 11 regions.
Economic Analyses  (EPA) of the Lieberman-Warner Climate Security Act of 2008 (designed to reduce U.S. greenhouse gas emissions through the development of a market driven system of tradable allowances), and related legislation.
Compensation for Electricity Consumers under a U.S. CO2 Emissions Cap  (Anthony Paul, Dallas Burtraw, Karen Palmer / Resources for the Future: July 19, 2008) – evaluates alternative ways of allocating emission allowances.
ASIA:
Carbon Emissions Scenarios for China to 2100   (Tao Wang,  Jim Watson / Tyndall Centre Working Paper 121, September 2008) – summarises cumulative carbon emissions scenarios for China to 2050 and 2100; explains methodology.
Impact of Revised CO2 Growth Projections for China on Global Stabilization Goals.(Geoffrey Blanford, Richard Richels, Thomas Rutherford / Fondazione Eni Enrico Mattei: September 2008) – models have underestimated the rate of increase in China’s emissions; recalibration of one of those models.
Carbon Trading Warms Up in Tianjin  (Yun Zhang / ALB Legal News: September 26, 2008) – new Tianjin Climate Exchange,  co-founded by the Chicago Climate Exchange. 
Institutional Design for the Emissions Trading System in Japan  (Toru Morotomi / Kyoto Economic Review, Vol. 75, 2006)  – useful background; see especially part 2 Significance and Limitations of the Voluntary Emissions Trading Scheme.
Japan Promotes Carbon Trading, Hybrids   (Ucilia Wang / greentechmedia: July 29, 2008) – plan to reduce the country’s greenhouse emissions by up to 80 percent by 2050.
Policy Issues.
Many of the problems and issues raised by ETS proposals, legislation and implementation are already apparent from readings already cited. Here are a few more that specifically highlight concerns.
BROAD COVERAGE:
Climate Change Policy   (Joshua Gans, speaking at the University of Melbourne / CoreEcon: October 08, 2008) – Australia’s ETS is not a diversified strategy. Need to:
  • cover measurement and political issues by investing in other direct ways of reducing emissions.
  • deal in a price-sensitive manner with trade-exposed industries rather than industry-by-industry.
  • cover innovation directly.
  • seek broader pollution abatement opportunities and target them.
Emissions Trading: The Pros and Cons   (Climate Change Australia: April 08, 2008)
Emissions Trading: The Good, the Bad, and the Ugly  (Gary Patterson / Articlesbase: July 31, 2008)
On a Planet 4c Hotter, All We Can Prepare for Is Extinction (Oliver Tickell / Guardian: August 11, 2008)
Pearse: Ingredients for Another Failed Response  (Guy Pearse / crikey: July 04, 2008)
Equity and Justice in Global Warming Policy. (Snorre Kverndokk and Adam Rose / FEEM Working Papers 80.08, September 2008)
Climate Change Will Probably Beat Us: Garnaut  (Age: June 05, 2008)
COMPENSATION:
Emissions Trading Scheme a Tax, Says Nelson   (AAP: August 02, 2008)
WA Government Must Seek Emissions Trading Compensation at COAG  (UNIONSWA: October 01, 2008)
COMPETITIVENESS:
EU Votes To Tighten Carbon Regulations   (SustainableBusiness.com News: October 08, 2008) – ETS proposals may cause European businesses to lose competitiveness.
Carbon Plan ‘Would Close Businesses’  (AAP: August 21, 2008) – Business Council of Australia warns of company closures and profit downgrades. See also Storm Warning  (Paul Kelly / Australian: August 23, 2008)
Higher Costs Kill Exports   (Alan Oxley / Australian: September 24, 2008)
Wong Promises Emissions Trading Help   (ABC: October 01, 2008)
Emissions Trading Scheme Will Drive Industry Offshore: Warning  (Renee Viellaris / Courier Mail: October 06, 2008) 
CONCERTED GLOBAL RESPONSE REQUIRED:
Light in the Fog   (John Garnaut / Sydney Morning Herald: July 19, 2008)
Delayed Participation of Developing Countries to Climate Agreements: Should Action in the EU and US be Postponed?
(Valentina Bosetti, Carlo Carraro, Massimo Tavoni / Feem Working Paper 70.08, September 2008)
COSTS OF EMISSION REDUCTION:
Treasury Costs ETS   (Lindsay Mitchell / October 06, 2008) – Australia.
Managing Costs in a U.S. Greenhouse Gas Trading Program: A Workshop Summary. (William A. Pizer / RFF Discussion Paper DP-08-23, July 2008)
Task Force Ignores the Cost of Reductions   (JSOnline: August 02, 2008)
ECONOMIC IMPACTS:
State-level Economic Impacts of a National Climate Change Policy  (Martin Ross et al / Pew Center on Global Climate Change: April 2008)
Rudd’s Carbon Scheme Chokes   (Paul Kelly / Australian: August 06, 2008) – “Australia’s emissions trading model cannot work… is misconceived and … will damage Australia’s economy with almost no prospect of solving the global problem.” 
Libs Urge Delay in Emissions Trade  (Cathy Alexander / Canberra Times: October 02, 2008)
EU’s Climate Package ‘in crisis   (Roger Harrabin / BBC News:  October 06, 2008)
EMPLOYMENT: 
Fears Climate Policy to Cost a Million Jobs   (Andrew Fraser / Canberra Times: July 10, 2008)
INTEGRATING THE GLOBAL MARKET:
Just Carbon Emission Trading  (frogblog: October 01, 2008) – harmonising ETS trading on an international market.
JUSTICE:
Charity Warns of Impact of Emissions Scheme   (ABC: September 25, 2008)
Justice and Climate Change   (Eric A. Posner and Cass R. Sunstein / Harvard Project on International Climate Agreements Discussion Paper 08-04, September 2008)
UNCERTAINTY:
Why Are Agricultural Impacts of Climate Change So Uncertain?    (David Lobell and Marshall Burke / Stanford University, 2008)
Garnaut Climate Change Review final report, Chapter 1: A decision-making framework
UNINTENDED CONSEQUENCES:
‘Closure of Power Stations on Cards’   (Rick Wallace / Australian: September 30, 2008)
How the Smart Guys Are Making a Killing out of the Carbon Credits Trade  (Age: August 04, 2008)
Are We Trading Energy Conservation for Toxic Air Emissions?  (Matthew Eckelman, Paul Anastas and Julie Beth Zimmerman / Yale University: October 01, 2008)
Learning Resources.
REFERENCE:
Emissions Trading and Offsets   – lists emissions trading, joint implementation and CDM solutions undertaken by members of The Pew Center’s Business Environmental Leadership Council.
Glossary   (Climate Change North, 2005)
Environmental Glossary  (Singapore Green Business Times: August 01, 2008)
“Cap and Trade.” A Mom’s Simple Definition. (Science Cheerleader)
King’s Global Warming Collection   (King’s College Library, University of Cambridge) – “greenhouse gases, the ozone layer, carbon trading and carbon sequestration, fossil fuels, renewables, nuclear energy, energy storage and distribution, and the hydrogen economy”.
GAMES AND SIMULATIONS:
Climate Challenge   – free online game, won the 2008 European Green IT award. Players guide Europe through the 21st century, making tough choices along the way.
How Greenhouse Gas Emissions Reduction will Affect the American Economy  (Robert Repetto / Yale University, 2007)
Your Carbon Footprint: Calculating, Reducing and Offsetting Your Impact  (TreeHugger, 2008)
BLOGS:
Emissions Trading – newsletter for the emissions market place. including news, prices, links and commentary.
Climate Change Blog   (California Academy of Sciences)
RealClimate: Climate Science from Climate Scientists   – scientific topics only.
Climate Change Australia   – discussion and analysis.
Carbon Offsets Daily   (Affan Laghari) – free resource on all things carbon.
Eco Report   (Sky News Australia)
WEBSITES:
University Corporation for Atmospheric Research
Climate Progress   (Joseph Romm / Center for American Progress Action Fund) – climate science, climate solutions, and climate politics; links to categorised resources in the sidebar.
Climate Change : Environment & Urbanization  (TakingITGlobal)
Global Climate Change: Research Explorer  (The Exploratorium)
Environmental & Energy  (mondaq)
COURSEWARE:
Global Warming   (Virtual Courseware) 
Costs of Climate Protection: A Guide for the Perplexed   (Robert Repetto, Duncan Austin / World Resources Institute, 1997) – MS PowerPoint
SEARCH:
Green Maven   – three tools:
PAPERS AND REPORTS: 
Documents on Emissions Trading   (Environment Directorate, OECD)
Climate Changes   – new research papers on the Economics of Climate Change.
Report Series   (Global Carbon Project)
Lessons from Global Environmental Assessments (M. Kok et al / Netherlands Environmental Assessment Agency, September 2008)
Global Trading versus Linking: Architectures for International Emissions Trading.  (Christian Flachsland, Robert Marschinski and Ottmar Edenhofer / Potsdam Institute for Climate Impact Research, September 2008)
A Lindahl Solution to International Emissions Trading (Yukihiro Nishimura / Queen’s University, August 2008)
On Modeling and Interpreting the Economics of Catastrophic Climate Change  (Martin L. Weitzman / REStat: July 07, 2008)
Future.
100 Months Technical Note   (Victoria Johnson and Andrew Simms / New Economics Foundation) – a dire warning.
Japan Sees Big Firms Trading CO2 Next Year   (Risa Maeda / Reuters: October 08, 2008) – a market for carbon offsets will be launched.
Shell’s Energy Challenge   (Chauncey Robinson / EarthTone Foundation Blog: August 05, 2008)
Aussies ‘prepared to pay to fix climate’   (Sydney Morning Herald: August 30, 2008)
The Influence on Climate Change of Differing Scenarios for Future Development Analyzed Using the MIT Integrated Global System Model  (Ronald Prinn et al / MIT Joint Program on the Science and Policy of Global Change, September 2008)
A Proposal for the Design of the Successor to the Kyoto Protocol. (Larry Karp and Jinhua Zhao / University of California, 2008) 
CSIRO Outline of Climate Change in Australia   – future climate change effects.
Small Sacrifice Can Save the Planet (Marian Wilkinson and Ben Cubby / Sydney Morning Herald: October 01, 2008)
Renewing Our Future  (Amanda McKenzie and Anna Rose / Online Opinion: September 08, 2008)
The Garnaut Climate Change Review: Final Report
The United Nations Climate Change Conference, Poznan, Poland – COP 14:  1-12 December 2008  (United Nations Framework Convention on Climate Change)
Tomgram: John Feffer, The View from 2016   (Tomdispatch.com: August 20, 2008)